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July 06, 2006


Joseph Ratliff

Ryan is right on with not competing on price. While it may seem a "quick way" to gain can damage your business more than it helps unless you can grow to Wal Mart status (275 BILLION dollars) really fast. That kind of strategy takes quite a bit of capital to sustain for quite awhile.

There are two morals that I will point out to the picture Ryan just painted.

1) Leave the price competition to companies that can afford to lose A LOT of money.

2) Competing on price adds NO value to your business, so do not devalue yourself and your business by being the "lowest price in town." Instead, look for ways to add value to your services, or find a niche market that is starving for what you already have to offer.

Joe Ratliff
Professional Copywriter

dawn maberry

i know this might sound silly, but, why would you do more work for less money?

John A. Manley

Good example Ryan.

I actually avoided a local telephone company that was offering services for nearly 30% less than the national phone company (Bell Canada).

I finally heard so much good things about them, I decided to call their sales office.

First question I asked: "How can you charge so little?"

It ended up being good reasons (namely that Bell Canada was over-pricing everything).

So I told them: "You got to tell us this upfront. I've been dumping your flyers in the trash for the last six months, because I didn't trust you."

I signed up, and have better internet access, full phone features, all for $35 less than I was paying before.

So this is an exception - but furthers the point that if all you are offer is a lower price, it's not necessarily a great marketing angle.

Your best customers want quality first, economy second.

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